Heavy crudes rush the market

Journal Article · Wed Oct 12 04:00:00 EDT 1983 · Energy Detente; (United States)

OSTI ID:5573497

There is indeed a shortage of heavy crude in California, one of the richest heavy crude regions in the world - for certain users. Certain independent refiners have had temporary or chronic difficulty in getting long-term supply contracts. But price is the principal problem since, throughout the year, producers have required premiums over posted buying prices - up to US $4 per barrel during the summer, and now often US $3 per barrel, for 13/sup 0/ API California crude. When an independent refiner isn't deterred by the premiums, he is often prevented from purchase by volume requirements. As California moves from a pioneer heavy crude producer to the most developed heavy crude market in the world, its production and refining sectors are rushed to invest in greater efficiency in order to compete. The same technological improvements in refining that have increased demand for heavy crude oil are driving cost-cuts upstream and downstream. Industry sources watch for OPEC output ceilings to be lifted to allow more Venezuelan exports of heavy crude and resid, thereby softening demand for California's production; Canadians look forward to sending more heavy crude to California next year. After the mid-1980s, the paradox of heavy-crude supply tightness in California may well have disappeared. This issue of Energy Detente includes the fuel price/tax series and the industrial fuel prices for October 1983 for countries of the Eastern Hemisphere.

• OSTI ID: 5573497
• Journal Information: Energy Detente; (United States), Journal Name: Energy Detente; (United States) Vol. 4:19; ISSN EDETD
• Country of Publication: United States
• Language: English and Spanish

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
CALIFORNIA
CARBONACEOUS MATERIALS
COAL
DATA
DATA COMPILATION
EFFICIENCY
ENERGY SOURCES
FEDERAL REGION IX
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
IMPORTS
INDUSTRIAL PLANTS
INDUSTRY
INFORMATION
MARKET
MATERIALS
NATURAL GAS
NORTH AMERICA
NUMERICAL DATA
PETROLEUM
PETROLEUM PRODUCTS
PETROLEUM REFINERIES
PRICES
SHORTAGES
TAXES
USA
VISCOSITY